Mining Minerals & Metals Share Discussion Threads

[loafingchard] 24/7/2009 15:14

I agree not enough . Even though this means i go from a loss to a profit . I reckon around 15p is a reasonable bid .

The Solana update looks very promising to me , bonanza grades are just that . There is gold in them hills .

[1waving] 24/7/2009 15:12

Undervalues GEX by a long way ---

Going for a song.

Very surprised the board cosidered this offer represents value !!!

Gold Fields put in their bid very quickly before the price of gold goes up.


Hold out for a better bid ? ----
but Gold Fields has the Sankarani JV and 9% plus directors shares which makes up to 12% --- will there be competitive bids.

[currypasty] 24/7/2009 15:06

thats a turn up!

[willyworm2] 24/7/2009 15:05

well at this level I'll walk away unhurt but unrich.....

£28m for the whole company doesn't look as good value as £32m for 65% of Komana. Thanks Macquarie.....

[dr fillip strange] 24/7/2009 15:04

Wow a surprise, for Friday afternoon. They gotta do better than 9p, I've paid 16cents for some of mine a few years ago...

[robbi123] 24/7/2009 14:56

BID @ 9p!

Still dont think this values us fairly! It was always coming after they pulled out of the JV

[spaceparallax] 24/7/2009 14:52

Nothing tremendously exciting except perhaps the secret of the previous bonanza grades becoming unravelled.

[deuchar] 24/7/2009 14:44

Does anybody know what this company is worth?

[1waving] 24/7/2009 11:44

That's probably why a little volume kicked in yesterday --

That drilling for structural and geological purposes seems to have done well in locating orezones at Badogo Malikili.

Only two holes at Niechiliela so needs more drilling.

BM looks promising -- more work to do at Niechiliela and Faliko targets.

[robbi123] 24/7/2009 11:32

Solana Update

Hugh McCullough, Managing Director of Glencar says: "Initial RAB
drilling at Badogo Malikila in the previous drilling season
intersected bonanza grades of 155g/t over a 4m interval. We think
that it is significant that we have now intersected a mineralised
porphyry body with close to ore grade mineralisation over good widths
in a setting with geological characteristics very similar to the
Komana West deposit some 35 kilometres to the northwest".

[share_shark] 22/7/2009 23:22

Well I will wait till they get to 1p and then I may repurchase.

I jest of course and it is a good job BB is away.

I am sure McH is working his socks off trying to obtain a Jv or similar or something advantageous for Glencar.

[serpicouk] 22/7/2009 23:14

A couple of interesting articles on minesite - from a financing point of view:





The proposed ormonde deal seems somewhat like ours with GF - once again, the major doesn't want to support the junior which means that if they can't match the cap-ex they'll be left with nothing but a royalty...

The second shows that large loans are still hard to come by.

Feel we're looking for a major but as I feared sometime back, the majors don't have to act like white nights for distressed juniors.

[share_shark] 22/7/2009 15:48

Edit-apologies-this article from SF t1ps Smaller Companies Gold Fund,

We live in uncertain times. Perhaps we are about to return to a deflationary spiral as we saw in the 1930s. Back then the only way to protect your wealth was in gold and gold shares. Rather more likely is that quantative easing ( the unprecedented printing of money on a global scale) will serve to ultimately debauch all paper currencies via inflation. Gold will not be so debauched and will therefore be the ultimate store of value.

Of course..Gordon Brown and Obama may have the situation under control in which case everything will be alright. If that happens then the wider market will soar and gold and gold shares will underperform. But would bet the ranch on Gordon Brown saving the world? If you have no gold exposure in your portfolio that is exactly what you are doing.

We are not alone in suggesting that our Prime Minister has not saved the world and that gold is heading higher. Citi Group, HSBC and Merrill Lynch are all predicting sharp increases in long term gold prices.

Some have suggested that there is already a gold frenzy. There is not. In 1980, the last time the gold price peaked (at more than $2000 in today's money) 5% of all the invested money was invested in gold and gold shares. Back then people were queuing in lines to buy gold. Now only 1% of all invested money is invested in gold or gold stocks.

[share_shark] 21/7/2009 12:32

Hows about this then ?. ;-)




So I have another idea, which I got from a knowledgeable reader nicknamed aitrader. How about a Gold-backed IOU system. In response to a recent post I wrote on the similarities in the troubles in California and Ireland, he wrote:


Now here's a curve ball for ya: what would happen if a state or even a private bank were to issue currency redeemable in gold or silver? What would the implications be for the US Federal Reserve? This was the situation for many years in the US. Private banks often issued their own paper currency redeemable in gold and silver. There is nothing illegal about this, though one would assume a new law would be crafted and passed to prevent this from occurring. On that note here is what happened recently to a private currency issuer.
Interesting times


For full article.

[share_shark] 21/7/2009 09:18

Nothing at all to do with Glencar but a pointer nevertheless.




Lihir Gold Seeking to Sell Ballarat Mine in Australia (Update1)
Share | Email | Print | A A A

By Jesse Riseborough

July 21 (Bloomberg) -- Lihir Gold Ltd., the second-largest gold mining company on the Australian Stock Exchange, is seeking to sell its Ballarat mine in Australia after a review of the project indicated it couldn't support bulk production.

The company "has received expressions of interests from a number of potential acquirers, which will be further pursued in coming weeks," Port Moresby-based Lihir said today in a statement to the Australian stock exchange. The sale is expected to be completed early next year and underground mine development will be reduced from today, it said.

Lihir has struggled to meet production targets at Ballarat, in Victoria state, since acquiring the mine in 2006 through the A$350 million ($284 million) takeover of Ballarat Goldfields NL. The company cut production and 200 workers at the mine in April as lower-than-expected volumes cut sales.

"The Ballarat project unfortunately will not fit our preferred investment criteria," Lihir Chief Executive Officer Arthur Hood said in the statement. "The disposal of the asset will enable management to focus on growth opportunities being developed in West Africa and at our Lihir Island operations in Papua New Guinea."

The stock fell 0.3 percent to A$2.89 at 3:04 p.m. Sydney time on the Australian stock exchange. Lihir reaffirmed its 2009 production forecast of 1 million ounces to 1.2 million ounces.

Total staff at the mine will be reduced to about 100 workers, Lihir said. It reaffirmed the company will take a one- time charge of as much as $350 million on the mine.

[share_shark] 21/7/2009 08:21

Gold Gains as Economy Outlook Boosts Demand for Inflation Hedge
Share | Email | Print | A A A

By Kim Kyoungwha

July 21 (Bloomberg) -- Gold climbed in Asian trading as equity gains and an improving economic outlook boosted demand for the metal as a hedge against accelerating prices.

The MSCI Asia Pacific Index of equities gained for a sixth day after an index of leading economic indicators in the U.S. topped projections, indicating the country may be emerging from recession. Federal Reserve Chairman Ben S. Bernanke wrote in the Wall Street Journal that the central bank "will need to tighten monetary policy" to prevent inflation.

"An improving economic outlook is leading investors to the risk of inflation, which will become more pronounced over time, bolstering demand for gold," said Hwang Il Doo, a commodities broker with KEB Futures Co. in Seoul. "Still, the metal may face some resistance above $950 in the short term."

Gold for immediate delivery gained as much as 0.3 percent to $951.75 an ounce before trading at $949.88 at 12:47 p.m. in Singapore. The precious metal has climbed 8 percent this year.

Bullion jumped to $954.99 yesterday, the highest since June 12, as the Dollar Index, a gauge of the dollar's value against six major currencies, fell to the lowest since June 3. The index was little changed at 78.934.

Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged for a second day at 1,094.54 metric tons yesterday, down from this year's peak of 1,134.03 tons in June, according to the company's Web site.

Among other precious metals for immediate delivery, silver was little changed at $13.67 an ounce, platinum added 0.5 percent to $1,189.20 an ounce and palladium was little changed at $254.40 an ounce at 1:02 p

[1waving] 20/7/2009 20:51

Not giving too much credibility into the 'raising' of $20-40 million, the Minesite article doesn't say that.

I think a general deal/JV worth $20-40 million in the same vein as the GF one is more probable ----- however there are more options than that.


"How much he'll look for this time round isn't yet clear, but it's likely to be somewhere in the region of US$20 million to US$40 million. And he's fairly confident he'll get it too. "I've no doubt we'll come up with something as attractive or even more attractive for shareholders", he says, and vague talk of "independent financing or possible mergers" has been tacked onto the end of the company's latest press release, although quite when such developments might be announced isn't clear."

I hope GEX raises sufficient cash over and above the circa $2 million they already have, to take Komana further for the coming drill season and then be in a stronger position resource wise, particularly with a decent gold price increase on top of a decent JORC increase.

Their deal making position should then be very much stronger -- plus the Adamus deal should have started and the long awaited Uganda JV also.

No need to force a deal on the crown jewel at the moment and Hugh has indicated there are plenty of options open.

[serpicouk] 20/7/2009 20:04

Some interesting posts...

I'm still looking for the post that might shed some light on how GEX, with a market cap of ~$20M and no BFS, plan to raise $20-40M without diluting existing shareholders.

SS mentioned Barrick a few posts back - do we feel it will have to be another tie in with a major or are there other options available? Anyone follow a company that's raised similar amount without anything 'concrete' like a BFS?

May be they will dilute by attrition so we won't notice (much)? i.e raise 5 million in the summer then another 5 million early next year (Edit - may be via a TSX listing if local markets aren't favourable?)...try to get a BFS on the cheap which will then allow them to get some real money or an easy JV on better terms?

Any and all thoughts greatly appreciated.

[share_shark] 20/7/2009 17:49

Oh, dont get me started Stenick, I am already in enough hot water!. ;-)

[stenick] 20/7/2009 17:47

Pity its not the SP!!!!!!!!

[share_shark] 20/7/2009 16:57

Thanks for that article I Waving.

Has anyone seen the latest TV advs?.

Large advs. advertising for all your gold(any condition) as gold prices are rising fast,said one adv.today.

[1waving] 20/7/2009 16:51

From jsmineset --- gold price forecast at the end of the article is something to look out for.


Posted: Jul 20 2009 By: Jim Sinclair

Dear CIGAs,

MOPE (management of perspective economics - the new economics) worked overtime to seek new lows in gold but their accomplishment has been minimal at best.

Keep the following in mind:

1. The price of gold is all in the dollar and has been since we met. Itwill continue to be.
2. China is quite upset with the disrespect received and what is perceived by them to be the Western element in the recent disturbances in remote provinces and an NGO believed to be financed by the West.
3. The weak position of the dollar could easily be an Achilles heel.

I suspect we are at a turning point in the affairs of MOPE as the front page of the Economist says by illustration. The meltdown in new economics can only be the inability to maintain confidence as management of perspective economics folds into the effects of the CIT walk away bankruptcy, the hubris of the mega-profit investment banks and the people that are being thrown out of their homes in groves.

We are nearing a breakdown in the US dollar with a target towards and under .7200. That means we are nearing the visible result of a currency event in terms of prices in general commodities.

The CIT failure means without any doubt upwards pressure on short term interest rates. The Fed will cave into Administration pressure, increasing Quantitative Easing to a level best described as infinite.

Gold will take out $1000 on this try with a very temporary retreat before it moves fully through. Gold will move to and through $1224 with a temporary battle. Gold will move toward $1650 but meet serious temporary opposition in the $1400 area.

All of this will occur starting quite soon. Hold on tight to all that is precious metals.

Stay the course.

Respectfully yours,
Jim in Dubai